Forms of International Business

I. Exporting
Advantages of Exporting Need for limited finance Less risk Motivation for international trade

Forms of Exporting
Indirect exporting (eg) Himalaya Publishing house sell their books to UBS Publishers of India, which in turn exports these books to foreign countries. Direct exporting Intra Corporate transfers (eg) Selling of products by Hindustan Unilever Ltd in India to Unilever in USA.

Export Intermediaries
Export Management Companies Co operative Society International Trading Company Manufacturers Agents Manufacturers Export Agents Export & Import brokers Freight Forwarders

II. Licensing
International Licensing Domestic manufacturer leases the right to use its intellectual property (ie) technology, work methods, patents, copy rights, brand names, trade marks etc.

 Licensee Licensee
Licensor Licensor leases the right to use IP Licensor Licensor receives Royalty Money

Licensee uses the IP to produce products & sells in his country

Licensee pays Royalty to licensor